SanDisk SNDK Stock Attempts a Reversal Ahead of Earnings After Testing $1,000 Support

Quick overview

SanDisk shares are attempting to recover after testing the critical $1,000 level, with improving broader market sentiment providing support, although Chinese competition, semiconductor weakness and uncertainty over AI spending continue to cloud the outlook.

SanDisk Shares Attempt a Trend Reversal

SanDisk shares are attempting to stabilize after one of the most dramatic declines in the semiconductor sector, with the stock rebounding from the crucial $1,000 support area as broader market sentiment improves.

Positive comments from President Trump regarding Iran and hopes of further de-escalation have helped lift risk appetite across global markets, providing some relief for technology and semiconductor shares.

For SanDisk, however, the rebound comes after an extraordinary selloff. The stock was trading above $2,350 only a month ago before losing more than half its value.

That leaves investors facing an important question: is the latest move the beginning of a genuine trend reversal, or simply another temporary bounce within a much deeper correction?

SanDisk Corporation Earnings Preview

The $1,000 Level Remains Crucial

SanDisk repeatedly tested the $1,000 area last week as selling pressure intensified across semiconductor stocks.

The level has become both a psychological and technical battleground. Buyers have repeatedly stepped in near the threshold, preventing an even sharper decline.

The latest rebound could encourage bargain hunters and short sellers to cover positions after the stock’s dramatic collapse.

However, repeated tests of major support levels can eventually weaken them. If SanDisk fails to hold $1,000 during another wave of selling, technical traders could interpret the breakdown as confirmation that the longer-term correction remains intact.

Conversely, a sustained recovery above recent resistance levels could provide evidence that buyers are finally regaining control.

The distinction between a short-term bounce and a genuine reversal will therefore be important.

A Stunning Reversal From June Highs

The scale of SanDisk’s decline is difficult to ignore.

The stock reached above $2,350 in late June as enthusiasm surrounding semiconductor demand, AI infrastructure and memory products pushed valuations sharply higher.

That optimism has since faded.

Concerns about semiconductor valuations, rising production capacity, Chinese competition and the sustainability of AI-related spending have triggered aggressive profit-taking.

SanDisk has consequently become one of the weakest performers in the memory semiconductor space.

The speed of the decline also means that the stock could remain extremely volatile. Large percentage moves in either direction are possible as investors reassess expectations following such a substantial repricing.

Chinese Competition Creates a New Threat

One of the most important structural concerns is China’s rapidly expanding semiconductor industry.

Much of the recent attention has focused on ChangXin Memory Technologies and its expansion in DRAM production. While SanDisk is primarily exposed to NAND flash rather than DRAM, the broader concern is that Chinese manufacturers are increasingly attempting to establish stronger positions across the memory industry.

Yangtze Memory Technologies, or YMTC, has become particularly important for NAND.

Industry estimates indicate that YMTC has already captured a meaningful share of the global NAND market, while additional capacity could allow the company to increase its presence further.

For SanDisk and other established memory manufacturers, greater Chinese competition could eventually create pressure on pricing, market share and margins.

That threat may not immediately affect earnings, but it represents a longer-term risk investors are increasingly factoring into valuations.

AI Spending Concerns Are Returning

Another source of uncertainty is the sustainability of AI infrastructure spending.

For much of the recent semiconductor rally, investors assumed that increasingly powerful AI systems would require enormous amounts of processors, memory and storage.

That thesis remains intact to a significant degree, but investors are becoming more cautious about how efficiently future AI systems can operate.

Advances in AI model efficiency could potentially reduce computing requirements for certain workloads. If developers achieve more performance with fewer resources, the long-term growth rate of hardware demand could fall below some of the more aggressive expectations currently embedded in semiconductor valuations.

That does not mean AI demand is disappearing.

Instead, the concern is whether the enormous capital expenditure cycle can continue expanding at the pace necessary to support today’s valuations.

Technical Reversal Signals Weakening Momentum

SanDisk’s recent price action has significantly weakened its technical outlook.

After reaching an all-time high near $2,354, the stock has experienced an aggressive correction, breaking below several important support levels before testing the $1,300 area for a second time today and eventually breaking below it.

SNDK Chart Daily – MAs Have Turned Into Resistance Now

With selling pressure accelerating, traders pushed the price below the $1,300 region and the 100-day moving average in green, which acted as support before, was broken Now the SNDK stock is heading toward the next support zone at $1,000.

Massive AI Infrastructure Spending Raises Questions

The scale of planned AI infrastructure investment also creates uncertainty.

Reports surrounding enormous data-center projects and complex financing arrangements have reinforced the idea that the AI infrastructure buildout remains exceptionally capital intensive.

While this demonstrates that technology companies continue committing substantial resources to AI, investors are increasingly asking whether these investments will ultimately produce sufficient economic returns.

For semiconductor manufacturers, sustained infrastructure spending would obviously remain positive.

But if spending growth eventually slows, companies exposed to memory, storage and AI infrastructure could face significant valuation pressure.

Technology Progress Provides Some Support

SanDisk continues to make progress on its technology roadmap despite the difficult market environment.

Together with Kioxia, the company is developing advanced 3D NAND technology aimed at enterprise storage, hyperscale cloud computing, AI workloads and next-generation data centers.

The technology is designed to improve storage density, performance and energy efficiency.

These developments reinforce the long-term case for SanDisk as demand for data storage continues to expand.

However, technological progress alone has not been enough to prevent the recent selloff.

Investors are increasingly focused on whether innovation translates into stronger pricing, sustainable margins and higher cash generation.

Memory Supply Remains a Key Risk

The memory industry is notoriously cyclical.

When demand rises and prices increase, manufacturers typically invest heavily in additional capacity. The resulting supply can eventually arrive just as demand begins to slow.

That can trigger falling memory prices and sharply lower margins.

SanDisk therefore faces a delicate balance.

AI, cloud computing and enterprise storage could support substantial long-term demand, but expanding production across global manufacturers could eventually create another supply glut.

The growing presence of Chinese producers adds another layer of uncertainty to that equation.

Earnings Could Determine the Next Direction

SanDisk’s upcoming earnings report could become the most important catalyst for the stock in the near term.

Investors will be looking beyond headline earnings and focusing on memory pricing, demand trends, inventory levels, AI-related orders and management’s forward guidance.

The company’s commentary on supply conditions and Chinese competition could be particularly important.

From a technical perspective, however, the $1,000 level remains the immediate focus.

A sustained defense of that area could allow the stock to build a recovery and potentially begin reversing part of its extraordinary decline.

A decisive break below it would tell a very different story.

Conclusion: Rebound, but Confirmation Is Needed

SanDisk’s latest rebound provides some encouragement after the stock’s brutal collapse, particularly as improving market sentiment and President Trump’s positive comments on Iran have helped lift broader risk appetite.

Yet the recovery remains fragile.

Chinese competition, semiconductor-sector weakness, uncertainty surrounding AI infrastructure spending and the cyclical nature of memory pricing all remain significant risks.

The $1,000 level is therefore more than just a round number. It has become the key test of whether buyers can finally establish a floor.

If SanDisk can hold the level and deliver reassuring earnings guidance, the recent rebound could develop into a broader recovery. If support fails, however, the stock could quickly face another wave of technical and fundamental selling.

For now, SanDisk is showing signs of stabilization, but investors may need stronger evidence before treating the rebound as a confirmed trend reversal.

ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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